Marsh & McLennan Agency buys insurer Aviation Solutions
Marsh & McLennan Agency, a US-based subsidiary of Marsh, has added Aviation Solutions to its long line of acquisitions in the insurance market. Through the acquisition, Marsh & McLennan Agency bolts on a reputable supplier of mid-market aviation offerings for clients across the US.
A wave of acquisitions has been passing over the middle-market insurance industry in recent years. The U.S. insurance business is huge, with about 3,000 life insurance companies, 2,000 property and casualty insurance companies and 20,000 insurance brokerage firms. Smaller companies find it hard to compete in this market, while large insurers can afford to diversify along several different lines, as the current low interest rates make it an attractive time for acquisitions.
The latest firm to bolster its ranks through M&A is Marsh & McLennan Agency (MMA), with revenues of approximately $900 million currently the 12th largest insurance broker in the US. The firm, built up from a range of acquisitions, was formed in 2008 and currently employs 4,000 professionals. MMA is a subsidiary of Marsh – which is itself is a subsidiary of Marsh & McLennan Companies.
The acquisition of Aviation Solutions will raise MMA's profile further, allowing for diversification into the aviation industry. Founded in 2004, Aviation Solutions (the firm employ roughly 10 people) offers customised aviation risk insurance programmes for individual, corporate, and commercial clients; including employee-health plans, worker’s compensation and pilot life insurance, across the United States. The company is located in Missouri, US, although it has a license to operate in all 50 states.
MMA’s acquisition of Aviation Solutions will see the company become part of MMA’s upper Midwest region practice, and will operate out of MMA’s existing Overland Park, Kansas, office. David Eslick, Chairman and CEO of MMA, “welcomes the firm”, adding that the company’s strong reputation will boost MMA’s profile in the area of aviation. “The addition of this tremendous professional team in Overland Park provides specialised aviation industry expertise and experience that will benefit clients throughout the upper Midwest and across the country,” says Eslick.
Aviation Solutions CEO Kyle White adds: “We are excited to join the MMA team. This transition is an excellent opportunity to expand our reach, while ensuring new opportunities for our associates and more resources for our clients. Aviation Solutions’ commitments to those we serve and the broader aviation industry will remain our focus as we continue to deliver the world-class service and expertise our clients have come to expect.”
